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The national average price of diesel fuel surpassed $6 a gallon Sept. 10 for the first time, according to GasBuddy, adding pressure to freight carriers, farmers and businesses that rely on diesel-powered equipment.
Diesel moves goods through much of the U.S. economy. It fuels trucks, trains, ships, construction equipment and farm machinery, meaning a sustained rise can show up in transportation charges and, eventually, the cost of consumer goods.
Oil markets have been strained by conflict affecting shipping through the Strait of Hormuz, Russian refinery disruptions and limits on Chinese fuel exports. Brent crude settled at $107.63 a barrel and West Texas Intermediate crude at $102.48 on Sept. 10, levels that have pushed up fuel costs across the supply chain.
The Energy Information Administration reported U.S. diesel inventories at 106.3 million barrels, 13% below their five-year average. Refiners have been operating at high rates, but analysts said seasonal maintenance and tight global supplies could make it difficult to rebuild inventories quickly.
For South Texas producers, haulers and small businesses, diesel is an operating cost with few immediate substitutes. Consumers may not see every increase at the pump, but higher freight and farm expenses can influence prices for groceries, deliveries and other everyday purchases.
